TUCSON, AZ (January 4, 2024) The Rillito Crossing Marketplace at 4210-4240 North 1^st Avenue in Tucson was sold to an investment group from Lake Forest, IL, Prairie Hill Holdings, for $27.525 million ($285 PSF). The seller, Rillito Retail, LLC, an Epic Real Estate Partners affiliate based in Austin, TX, purchased the property in 2019. This is Prairie Hill Holdings’ first acquisition in Tucson.

Patrick Dempsey and Bryan Ley of JLL handled the transaction.

Built in 2008, the property has a 96,424 RSF core and excess land for additional development. Located at the northeast corner of 1st Avenue and Limberlost Drive, the property sits in the dynamic Oracle Wetmore retail node, just 4 miles from the University of Arizona. Rillito Crossing Marketplace was 97% leased to a mix of local and national “daily-needs” tenants consisting of grocery, fitness, health/wellness, restaurants, and other complementary uses. Covering +-13.01 acres, the property includes two vacant land parcels totaling 2.78 acres that are prime for additional retail development. The grocery-anchored neighborhood center included Sprouts, LA Fitness, and all inline shops and pads. Vantage West Credit Union pad is owned separately.

National grocery anchor Sprouts Farmers Market (SFM: NASDAQ) has over six years of lease term remaining with subsequent option periods. This dominant grocer04 recently completed a $1.2 million interior remodel in concert with a 10-year renewal in 2019.

Included were two vacant parcels, providing a value-added opportunity for an investor to develop additional leasable square footage at the center. The larger +- 2.23-acre parcel is just south of LA Fitness. This shovel-ready piece allows for up to 35,000 square feet of additional retail. The second 0.55-acre parcel fronts 1st Avenue and is ideal for a fast food or quick service user for up to 28,000 square feet of additional shop and/or anchor space.

Rillito Crossing Marketplace is in Tucson’s premier Oracle / Wetmore retail trade area, offering a large national presence and wide consumer draw. The dense population of over 243,000 people in a 5-mile radius and direct access to the Catalina Foothills are reasons why occupancy has remained high at the property.

Rillito Crossing Marketplace is an ideal daily-needs neighborhood center with over 1,150 apartment units (2,110 residents) within a quarter mile. Over 19,300 people live within a 1-mile radius, and the shopping center is a direct beneficiary.

For more information, Dempsey can be reached in the Phoenix office of JLL at 602.956.777, and Ley is in the Los Angeles office at 310.407.2120.

To learn more details, see RED Comp #11050.

TUCSON, AZ (December 21, 2023) – Sale leasebacks are growing in popularity as they represent benefits to both the seller-tenant and buyer-landlord. However, in today’s post-pandemic real estate market, where many properties remain in high demand and financing costs are rising, the popularity of sale-leaseback transactions is emerging as an attractive vehicle for owners and investors of real estate as a mechanism for tapping into a readily available source of capital. Compared to other commercial real estate and stock market investments, a properly structured sale-leaseback transaction can be a more attractive investment vehicle for sellers and buyers.

Banner Health has been using sale-leasebacks for their properties in Tucson, and several Banner medical offices recently sold in sale-leasebacks:

An investor in Salt Lake City, UT, Roy S Lulow Investment Company, bought 2167 West Orange Grove in Tucson for $1.846 million ($309 PSF). The seller is a medical group, Banner University Medical Group Cholla Pediatrics, that will continue to occupy the medical office with a leaseback agreement. John Yarborough and David Carroll with Romano Real Estate handled the transaction for buyer and seller, that closed on December 8, 2023.

In a separate portfolio sale, Banner Health – UMC sold three medical office facilities in sale-leasebacks to New York-based The VanBarton Group, a privately owned, vertically integrated real estate investment manager. With a 30-year track record investing in customized real estate strategies for large, sophisticated institutional investors, the Banner portfolio was acquired for $19.5 million.

The three properties in the portfolio included:

• University of Arizona Cancer Center at 1881 -1891 West Orange Grove sold for $10 million ($343 PSF)
• Banner Multispecialty Clinic at 265 West Ina Road sold for $7.1 million ($324 PSF)
• Banner Multispecialty Clinic at 7901 E 22^nd Street sold for $2.4 million ($290 PSF)

The buyer, The VanBarton Group and seller, Banner Health for all. The sale prices were recorded on December 13, 2023.

For more information, Yarborough and Carroll should be reached at 520.577.1000.

To learn more, see RED Comps #11019, #11030, #11031, and #11032.

TUCSON, AZ (December 20, 2023) – A San Jose, CA buyer traded into the Dollar General store at 12059 West Clark Farms Blvd. in Marana for $2.05 million ($216 PSF).

The 9,504-square-foot store was built in 2019 near Gladden Farms in Marana, Arizona. The NNN lease was sold with 15 years remaining on an absolute triple net lease with 10% rent increases and five 5-year options.

The last Dollar store to sell in Tucson was back in February at 7440 S Wilmot Road and sold for $2.4 million and a 5.25% cap rate.  Cap rates have risen since then.

Dave Hammack with Cushman & Wakefield | PICOR represented the seller, Scalzo-Ostermiller, LP, a San Juan Capistrano, CA, entity.

The buyer, Redwood Villa of San Jose, CA, was in a 1031 exchange and represented by George Renz with RENZ & RENZ, also from California.

For more information, Hamack can be reached at 520.546.2712, and Renz is at 480.846.1031.

To learn more, see RED Comp #11033.